However, some of the 4,000 pedlars currently operating with police authorisation are said to have an “emotional” attachment to the Victorian laws that grant them their status.

Councils have previously raised concerns that looser restrictions could make it more difficult to monitor traders.

But the Government said current regulation of door-to-door traders was “untenable”. Ms Swinson said: “Some of the best places to shop are our vibrant street trading stalls, which are an important part of traditional British culture.

“The changes we’re proposing will help to eliminate barriers to street traders and pedlars by making it easier to trade, helping small traders – including many young entrepreneurs – to expand and grow.

“The Pedlars Act is an archaic law which requires those wishing to peddle to obtain a pedlar’s certificate (and pay a fee for this) at a time when small businesses are at the heart of continuing growth in the UK – this is unhelpful and restrictive bureaucracy.

“These proposed changes will help give a boost to those that trade on the street.”

The Government is holding a consultation on the plans until Feb 15.

Officials estimate that the cost to the police of abolishing the 1871 Act will be about £49,000 as a result of losing the £12.25 administration fee for processing applications.

There is only a “minimal” risk that the move could lead to more pedlars who are of “poor character” because police rarely check applicants’ criminal records.

Under the proposed reforms, pedlars will have to move to a new site 10 minutes after arriving at a location and attempting to sell their wares. It must be at least 50 metres from the first location and he should move on again after 10 minutes.

They will have to carry their goods unsupported or in a trolley, which must be no larger than two metres high.